NZ market rises on potential for more Chinese stimulus

A resilient New Zealand sharemarket posted a handy gain amid continuing global tension over Middle East geopolitics and speculation China may produce another round of economic stimulus.

Friday, October 4th 2024, 6:25PM

by BusinessDesk

The S&P/NZX 50 Index dipped in the morning after the United States' major indices were weaker but recovered in the afternoon when the Hong Kong Hang Seng index traded strongly.

The NZX50 closed at 12,619.94, gaining 47.28 points or 0.38% after reaching an intraday low of 12,505.55.

The index finished a solid week’s work up 1.3% and is now 7.1% ahead for the year. There were 28.23 million shares transactions worth $110.35m over the whole market.

Shane Solly, portfolio manager with Harbour Asset Management, said given the early fall – with global geopolitics playing out – the local market performed better than expected.

“Overnight US bond yields were down over the uncertainty of the broadening Middle East action and the concern over what that means for supply chains and oil prices.

“Then we had speculation of another Chinese round of stimulus – one commentator suggesting to the tune of $10 trillion yuan (NZ$2.25 billion) – when they come back from the Golden Week public holiday,” Solly said.

On Wall Street, the Dow Jones Industrial Average declined 0.44% to 42,011.59 points; S&P 500 was down 0.17% to 5,699.94; and Nasdaq Composite eased 0.037% to 17,918.48 with Nvidia gaining 3.32% to US$122.80.

The Hang Seng index had risen 1.75% to 22,500.18 points at 5.45pm NZ time, while the Chinese markets remained closed.

Across the Tasman, the S&P/ASX 200 Index was down 0.78% to 8,141.10. At home, Fisher & Paykel Healthcare was up 11c to $35.95; Spark increased 8.5c or 2.74% to $3.19; Mercury added 8.5c to $6.385, Manawa Energy gained 12c or 2.39% to $5.15; and Hallenstein Glasson climbed a further 10c to $7.20.

Freightways gained 9c to $9.59; Chorus was up 10c to $8.88; Ryman Healthcare increased 13c or 2.98% to $4.49; Sanford rose 20c or 5.41% to $3.90; Fonterra Shareholders’ Fund added 13c or 2.83% to $4.72; and Seeka was up 6c or 2.31% to $2.66.

Infratil gained 5c to $12.21 after telling the market its investment value in CDC has increased A$287m (NZ$316m) over the past three months because of increased demand. Infratil’s 48.17% stake is now valued at a midpoint of A$4.81b, up from A$4.16b.

Infratil said the valuation increase reflects a continued high level of interest from customers, and acceleration in construction and development activity. CDC has data centres in Canberra, Melbourne, Sydney and Auckland.

ANZ Bank, up 59c or 1.81% to $33.11, has settled two class actions, one involving the investment of superannuation funds in 2020, and the other over the use of flex commissions in dealer-arranged car loans from 2011-16. ANZ is paying $14m for the first action and $85m for the second.

Westpac Bank, down 52c to $33, has an agreement with Resimac Group to sell its remaining auto finance loans and lease receivables for $1.4b-$1.6b, with the sale expected to be completed in the first half of next year.

Other decliners were Fletcher Building down 8c or 2.53% to $3.08; AFT Pharmaceuticals decreasing 7c or 2.24% to $3.05; Third Age Health shedding 4c or 2.05% to $1.91; T&G Global easing 3c or 1.96% to $1.50; and 2 Cheap Cars falling 4c or 5.19% to 73c.

Napier Port declined 4c or 1.79% to $2.20; Eroad fell 9c or 7.89% to $1.05; Ventia Services was down 11c or 2.14% to $5.04; Green Cross Health shed 4c or 5.13% to 74c; and Millennium & Copthorne Hotels NZ decreased 7c or 4.05% to $1.66.

Other gainers included Heartland up 2c or 1.98% to $1.03; Smartpay rising 5c or 5% to $1.05; Vista Group increasing 7c or 2.58% to $2.78; Foley Wines collecting 2c or 2.67% to 77c; and Scott Technology adding 5c or 2.44% to $2.10.

Software firm Blackpearl Group went into a trading halt after launching a $10m capital raise – involving a placement and share purchase plan – at $1.25 a share. Blackpearl told the market its annual recurring revenue increased 126% to $10.4m at the end of September. The company last traded at $1.40.

Tags: Market Close